Impact Of Brexit On The Construction Industry

Since Britain woke up to the news in June 2016 confirming the exit from the EU, the implications on business have remained unclear. Uncertainty of the effects of Brexit in the construction industry have not just been around the regulations and standards, but also the reliance on the market for the import and export of materials, the current skills shortage and funding. In this article we discuss the possible effects Brexit will have on the construction industry and the businesses within this sector. Companies with efficient and compliant construction software systems are set for a smoother transition into non EU Britain. Is your construction software solution up to Brexit? Let EasyBuild hold your hand. Movement of staff, currency fluctuations, variants in supply chains, possible price increases and contract renegotiations will present challenges, challenges that can be made easier with an effective software solution. Future planning, company projections and compliance with data storage are managed with ease with technology that can deal with accounting, HR, project and supply chain management. Construction businesses are using this opportunity to review systems, key business processes and secure supply chain agreements to ensure there is a limited impact to previously priced jobs.

Workforce & Skills Shortage

The construction industry is extremely reliant on the labour of EU migrants to provide professional and basic work roles. The shortage of staff will make it harder to control costs and could lead to UK workers demanding higher salaries which in return will put immense pressure on businesses as they will have limited options when it comes to employment. Not to mention that the shortage of staff will also bring a shortage of skills to the industry. There are thousands of construction projects all over Europe and the UK is not the first choice for many professionals, this is because the value of sterling has fallen and the potential earnings for international candidates has reduced. This could potentially further delay in the government’s housing target to build one million new homes and will have a lasting effect on the housing crisis in the UK. It is essential to offer potential workers an attractive incentive to choose your project and not larger projects that might be taking place around Europe. The EasyBuild Construction Software solution can provide monthly and weekly fully integrated payroll solutions that will help your business survive the exit from the EU.


Upon leaving the EU, the construction industry has the potential to receive a hit from funding cuts, as construction is one of the biggest industries to benefit from the EU funding. The European Investment Bank has been a vital source of funding for infrastructure projects in the UK (around 7.8 billion euros in 2015) and without it the country may struggle to fund any future projects, technology advancements, research and development such as smart motorways and business start ups. Fortunately, this may not be a long term impact. With the pound predicted to weaken, investors may see this as an opportunity, providing Britain is a positive investment choice after leaving the EU. During Brexit it can be hard to keep track and manage your costs and transactions if you are suffering from a cut back in funding. EasyBuild Construction Software will keep you on top of your project’s budget using the construction accounting module.

Red Tape

Those who have voted in favour of Brexit have made it known that lengthy red tape and complicated procurement procedures will be no more when the UK leaves the EU. It is likely that new trade agreements will follow the same or similar regulations and standards as they have in the past and this has been confirmed by the government’s Great Repeal Bill which seeks to directly convert applicable EU law into UK law.

Construction Materials

Approximately two-thirds of the UK’s construction materials are imported from around the EU. As the sterling is weaker, the cost of importing materials will be higher. The European Union provided the country with free movement not only of people but also of goods, and so the forthcoming future of Brexit may mean that importers and exporters may be presented with limit on quantities and duties. On the bright side, the UK has an opportunity to negotiate trade deals with the EU and other large importing countries such as the USA and China. Although the uncertainty of Brexit holds potential threats to the construction industry, we need to have confidence in our leaders and our ability to negotiate with others in order to enable a smooth transition into the exit from the EU. Do you think Brexit is going to have detrimental effects on the construction industry to no point of return?

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